State Specific Question About: NORTH CAROLINA (NC)

I’m new at the landlord business. I live in NJ and bought a rental house in NC. I hired a property management company (PMC) to find the tenants and to do all the work for me. I said I wanted 1 ½ mth security, $250 pet fee and would only allow pets 25lbs and under.

Turns out the PMC only took 1 mth security, didn’t even know the tenants had a pet till my sister went to the tenants to deliver something for the tenant. They gave me the round around for the pet fee (which they ended up coming up with the money since they never even stipulated anything regarding pets on the lease). Also, they never had me sign the rental lease agreement yet the tenants are in the house for 2 months now.

Long story short, the PMC apologized and sent me a contract termination agreement so that I can take over the management of the house. This form says that I basically we free each other from any legal issues that might arise later on. I know that by law they will have to transfer the security deposit to me. But they also want me to sign the old lease they had the tenants sign.

What should I do? Should I sign the old rental lease agreement or should I tell them that I will make my own once I take over the management of my property? Should I just sign that standard contract termination fee or should I consult an attorney?

Sandra

Disclaimer: I know next to nothing about PM companies.

If someone put a substandard tenant in my property, then did such a miserable job managing that we were going to part ways, there is no way in h-ll I'd sign a contract relieving them of liability for the substandard tenant they put in.

If you hired a guy to build a deck on your property, then he used substandard materials you specifically asked him not to, and you fired him... would you sign a waiver of liability, that the potentially dangerous construction he did was now your liability? No way. Now... you may tear down the deck and start over, and you may use the deck with the knowledge that it isn't what you wanted, but there's no way you'd sign a waiver that said that if you fell through the substandard deck, it'd be your fault, not the guy who installed the substandard materials AGAINST YOUR SPECIFIC INSTRUCTIONS.

Tell the PM company that unfortunately, you don't allow pets at your property -- just like you said up front. Tell the PM company that your security deposit is 1.5x rent, just like you said up front. Tell the PM company that you're happy to welcome the tenant into your property, with the appropriate credit checks, deposit, and lack of pet. Whatever legal snafu entails is, IMHO, the PM's problem. Maybe (unlikely) the tenant will cough up another .5x worth of deposit and give the pet away. Maybe he'll move once the PM pads his pockets with some moving money. Maybe he'll sue the pants off the PM. But under no circumstances would I make someone else's screw up MY problem.

Tell them to send you a copy of the lease and relaease form for you to read first.

You dont know what terms they have put in the lease and dont want to accept responsibility for soemthing someone else has written.

Usually the PM signs the lease as your rep (you dont sign the lease).

My thinking is that you will make your own lease with the tenants. But now you are in a bad position. What will you do if the tenants decide they dont want to sign anything?

I would also request all the credit, employment history ect they have on these tenants.

As a property manager, no Owner/Client dictates my security deposit/pet policy and if you thought you could and they did not advise you differently - their bad.

Mike, Andrew and Wallace, thank you for your advice and comments.

Wallace, the realtor agent that helped me find this property (but unfortunately doesn't do PM other than for his own rental properties) said that as the owner I stipulate what I want and the PM should collect the security deposit and fees that I want (of course within reason and law).

I never signed a power of attorney with the PM, so they were required to have me sign the lease before surrendering the key to the tenants.

In addition, they asked me how much deposited I wanted to collect for the security and if I wished to allow pets in the house.

In an email, after I complained for failure to collect he 1 1/2 deposit, the PM Apologized and said it was a miscommunication between the PM and the tenant so in order not to loose the tenant they waved (w/o my consent) the 1/2 month of the security deposit.

After my realtor called them and told them what the law was in NC (specifically Charlotte), that’s when they apologized again and are trying to get me to sign the rent lease agreement and they want me to sign the contract termination so I can free them up of responsibilities.

I think Andrew and Mike are on to something. I cannot sign anything and I must collect all the records they have from the tenants.

I would start communicating explicitly by e-mail, and start rounding up anything and everything you have that mentions the 1.5x security deposit and the "no pets" agreement.

Wallace, I always appreciate your posts. You're a bulldog, for sure, and take no BS. I have read similar comments from you before ("no Owner/Client dictates my security deposit/pet policy"), and I can't imagine how any owner would agree to such terms, nor how you could get enough people to agree to these terms to run a successful business. Isn't it the property manager's job to manage a property in the way the owner/client sees fit? You refer to it as "your" policy, but isn't it "my" property that your policy applies to? If "your" deposit policy isn't sufficient to cover damages, do I get to come after you for the remainder of the damages?

i would move on and find another pm company.....not familiar with pmc...

i'm in charlotte..., and no this is not a solicitation as i'm not a pm...

Good advise Mike. I've spoken to other people who have hired PMs and they've had good experiences. As everything in life, there are bad ones out there that give all PM a bad reputation.

Tyler thank you but if the tenants are good (which so far they have paid their rent on time and been taking care of the house) I will end up signing a new lease with them.